Professional Documents
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Political Economy: & Development
Political Economy: & Development
&
Development
GROUP 2
Crislyn David John Ver Dela Cruz
Russel Cordova Charles Castillo
Political economy
• The ideas of economists and political philosophers, both when they are right and when they are
wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else.
Practical men, who believe themselves to be quite exempt from any intellectual influence, are
usually the slaves of some defunct economist. (John Maynard Keynes, The General Theory of
Employment, Interest and Money, 1935)
• Groups of individuals with similar or overlapping goals will pool together their influence in order to alter the
rules of the game
• As the economy evolves these power blocks will break apart and reform in different manifestations over and over again in a
perpetual process
• They can coalesce in a number of ways e.g. political parties, interest groups, issue based lobbyists
• If we include the portion of wealth that is hidden in tax havens or in other ways, these
percentages would increase by at least 2 or 3 points.
Source: Thomas Piketty, Le capital au XXIe siècle, Le Seuil, 2013, 970 pp. (Capital in the Twenty-First Century, Harvard University Press, 2014 996 pp
The Welfare state
The idea of
the welfare State
• The idea of the welfare state underpins a variety of different economic
and social organisations
• Reflects activist state policy to protect and promote the economic and social
well-being of its population
• Redistribution of income and wealth
• Provision of public services (health, education, housing, public transport)
• Basic protections e.g. a state provided pension
• The Beveridge Report (1942) argued that government should provide adequate income,
education, healthcare, housing and employment for everyone
• The National Insurance system
• State should only intervene to provide for basic needs (poverty relief)
• Means tested benefits
• Improvement in human
welfare ,quality of life, social well
being.
• Satisfying the population’s needs
and wants.
NATIONAL DEVELOPMENT
• National development refers to the ability of a
nation to improve the lives of its citizens.
Measures of improvement may be material, such
as an increase in the gross domestic product, or
social, such as literacy rates and availability of
healthcare
INCOME AND OTHER CRITERION
DEVELOPMENT
• People have many different developmental goals other than income. Higher income alone cannot
bring about development. Several criteria other than per capita income are used to evaluate the
economic development in different countries and states. Some criteria other than income used to
compare development are:
• Life expectancy
• Infant mortality
• Literacy rate
• Net attendance ratio
• Gross enrollment ratio
• A community also needs public facilities for education and training, affordable healthcare, and
provisions for adequate food and nutrition for development. Body mass index is an interesting way
to find your health status. Countries with lower per capita income than India have comparable or
higher developmental performance on other criteria.
HOW TO COMPARE DIFFERENT
COUNTRIES
• According to the World Bank
• Comparing the total income may not tell us what an average
person is likely to earn ,since people in our country may be
better off then others in a different country. Hence, per capita
income is the average income . The criterion is used in
classifying countries , in the World Development Report 2012,
brought out by World Bank. Countries with per capita income
of US $12276 per annum and above 2010 are called rich
countries and those with per capita income of US $1005 per
annum are called low income countries.
• According to the UNDP
• UNDP also encourages the protection of human rights and the
empowerment of women in all of its programmes. The UNDP Human
Development Report Office also publishes an annual Human
Development Report (since 1990) to measure and analyse
developmental progress. In addition to a global Report, UNDP publishes
regional, national, and local Human Development Reports.[3]
• UNDP is funded entirely by voluntary contributions from member
nations. The organization operates in 177 countries, where it works with
local governments to meet development challenges and develop local
capacity. Additionally, the UNDP works internationally to help countries
achieve the Millennium Development Goals (MDGs). Currently, the
UNDP is one of the main UN agencies involved in the development of
the Post- 2015 Development Agenda.
SUSTAINABLE DEVELOPMENT
• Environmental care ‘married’ to development.
• Improving the quality of human life while living within the carrying capacity of
supporting ecosystems.
• Development based on the principle of inter-generational {i.e. bequeathing the
same or improved resource endowment to the future that has been inherited),
inter-species and inter-group equity.
• Development that meets the needs of the present without compromising the
ability of future generations to meet their own needs.
• An environmental ‘handrail’ to guide development.
• A change in consumption patterns towards more benign products, and a shift in
investment patterns towards augmenting environmental capital.
IMPORTANCE OF SUSTAINABLE
DEVELOPMENT
• Sustainable development is development that meets the needs of the
present without compromising the ability of future generations to meet their
own needs. Sustainable development has continued to evolve as that of
protecting the world’s resources while its true agenda is to control the
world’s resources. Environmentally sustainable economic growth refers to
economic development that meets the needs of all without leaving future
generations with fewer natural resources than those we enjoy today.